INEOS has just spent $70 million modernising a manufacturing plant that it acquired from BP just over a year ago. It has installed a larger, oxidation reactor, an overhead heat recovery system and modified the main process air compressor at the plant, which has been operating in Merak, Indonesia, for nearly 25 years.
The result has led to a 15% increase in production of purified terephthalic acid (PTA) – and a 15% reduction in CO2 emissions per tonne.
15%
Increase in production of purified terephthalic acid (PTA)
15%
Reduction in CO2 emissions per tonne
575,000
The Merak plant will mean INEOS can now produce 575,000 tonnes of PTA every year
“Our investment not only shows our commitment to the site’s future growth, but it also supports our commitment to producing essential products while reducing emissions to net zero by 2050,” said Frank Yang, President Director, INEOS Aromatics Indonesia.
Purified terephthalic acid is the main ingredient to make polyester.
Its fibres are used in textiles, its films in electronics and its resins are used in the packaging industry – and it is in demand in Indonesia.
The changes to the Merak plant will mean INEOS can now produce 575,000 tonnes of PTA every year.
“Our key business partners and government ministers have really welcomed our commitment to the plant,” said Frank.
“It is the first time in over 20 years that an Indonesian PTA producer has made such a major investment.”
The plant – along with 156 employees – became part of INEOS when the company bought BP’s petrochemicals business in January 2021 for $5 billion.
“The local staff are really excited since the investment and feel confident about their future,” said Frank.
The overhaul, which will also improve the reliability and competitiveness of the plant, was completed safely despite the global COVID-19 pandemic.
"We want to thank everyone who participated in the project, the surrounding communities, and regulators in providing the support needed to complete the project safely,” said Frank.
INEOS Aromatics now has sites across the US, Asia and Europe who produce more than five million tonnes of PTA every year.
It is a significant and growing business, with 1,200 staff worldwide and a $4 billion turnover.